Please review
Overview of Alternatives to Foreclosure and decide which
option would work best for you. If you've missed a
mortgage payment, your first step is to contact your Lender
right away.
- Be prepared to spend significant time on hold.
- Document the date and time, name of the person you
talked to, and summarize what was discussed.
- Ask for a direct phone number and extension.
- Do NOT agree to a repayment plan unless you are positive
you can fulfill the agreement.
- Ask for a workout package to be sent to you.
(Reduce or eliminate unnecessary expenses before submitting
your financial information.)
If after following these instructions and talking with your
lender, you feel you need further assistance, please call us at
360-690-4496 ext 102. We are a
HUD-certified
mortgage default prevention counseling agency. We can
help you avoid foreclosure rescue scams and set up a plan of
action designed just for you and your situation.
Our only fee is $25 for a credit report. When
you call, you won't be judged,
and most of all, you won't be disappointed.
To prepare for counseling, below are some suggestions to
review before calling for a counseling session:
- Download and review the
Homeowner Checklist to Avoiding Foreclosure which
provides general suggestions and ideas as to how you can
prepare for and work through tough times. This
checklist is not comprehensive and is not intended to
provide legal advice. If you need legal advice, you
should speak with a lawyer. The best way to avoid
foreclosure is to make your mortgage the first bill that you
pay each month. However, that is not always possible.
- Always call your lender each month to keep them informed
of your progress. No
lender wants to foreclose on a mortgage. Foreclosure costs
them more money than they can make back from the foreclosure
sale. Therefore, lenders do not foreclose in order to make
money, but only reluctantly as a way of limiting losses on a
defaulted loan. This is why, if you get behind on your
mortgage payments, your lender will work with you to devise
a practical plan to cure the default and bring the loan
current.
- Look at your debts closely when
Choosing Which Debts to Pay First, when you can't pay
everyone. Determine which of your debts are "secured"
and which are "unsecured".
- Lenders can offer alternatives to mortgage foreclosures.
You will need to provide a
Hardship
Letter,
list of assets and expenses, bank statements, and pay
stubs. Any lender workout agreement is a last-ditch
effort by you and your lender to avoid foreclosure and keep
you in your home. It is not a substitute for good
budgeting and financial planning on your part and will
probably not be available if your payment record has not
been consistently good up to the present time. Lenders
will work closely with good borrowers who are having a
period of real emergency and hardship, but are not inclined
to cooperate with those who demonstrate little financial
discipline.
- At sometime, you may think of refinancing. Be
careful of using this option. Remember, there are
costs involved and usually higher interest rates, due to
your situation. Refinancing an unaffordable amount of
debt is one of the most tempting, yet risky steps you can
take, when you have financial problems. Many
refinancing loans will hurt you more than they help.
Download and review the
Refinancing Do's & Don'ts and 15 Simple Refinancing Rules.
Other Sources:
Brochures:
Article:
Websites:
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